More Information

The Fairfax County Board of
Supervisors has authorized a new initiative to address the foreclosures within
the county. It is anticipated that the total number of foreclosures
in the county in 2008 will far exceed the number of foreclosures in the
county in 2007.

The total number of foreclosures in 2007 was 4,527. In the first
quarter of 2008, the number of foreclosures was 3,518. The initiative
is a three-pronged approach designed to address the current foreclosure
problem and help stabilize impacted neighborhoods while increasing the
opportunities for additional workforce housing. These approaches
include: Assistance to Homeowners in Distress, the Silver Lining
Initiative and Neighborhood Preservation Efforts.

"This new initiative, funded through existing resources, will help
restore stability for residents and neighborhoods affected by the
foreclosure crisis," said Board of Supervisors Chairman Gerald E.
Connolly. "We will offer assistance to those at risk of losing their
houses, assist first-time buyers purchase already vacant houses, and
in some cases the county or its nonprofit partners will purchase a small
number of houses to help stabilize distressed neighborhoods."

Assistance to Homeowners in Distress
Foreclosure specialists from the Fairfax County Department of Housing
and Community Development (HCD) and other county agencies and nonprofits
will coordinate efforts with the Virginia Housing Development Authority
(VHDA) to counsel households at risk of foreclosure in Fairfax County. In
addition, VHDA is training volunteers as certified foreclosure counselors
to assist with the counseling of at-risk households. The focus of the
counseling is to connect homeowners with their lenders or other
resources, with the ultimate goal of a loan work out. HCD also will
perform community outreach to include attorneys who could provide pro
bono services to at-risk households.

Silver Lining Initiative
Through a federally funded Home Equity Loan Program (HELP) shared equity
loan, HCD will assist first-time homebuyers to purchase a foreclosed
home. The purchase price of the foreclosed home can not exceed $385,000,
and homes are limited to townhouses and single-family homes. Low-cost
first mortgages through the VHDA’s SPARC program will be used for
qualifying households. It is anticipated that up to 100 homes will be
purchased through this initiative by first-time homebuyers. If a
foreclosed home requires repairs or improvements the Home Improvement
Loan Program (HILP), offered by the Fairfax County’s Department of
Housing and Community Development, can be used to make needed repairs.
Upon the sale or transfer of the property, the county will be repaid and
share in the appreciation.

Neighborhood Preservation Efforts
To assist in maintaining home values in communities with foreclosed
properties, the county will use a variety of tools:

Direct Strategic Purchase: The Fairfax County Redevelopment and
Housing Authority (FCRHA) will purchase up to 10 foreclosed homes
identified as abandoned, deteriorated or a destabilizing force on the
neighborhood. The home will be rehabilitated and resold to first-time
homebuyers or a nonprofit organization. Funding of up to $2.95 million
for the purchase and rehabilitation of these 10 units will come from
the FCRHA's taxable line of credit and will be repaid once the property
has been sold to a first-time homebuyer.

Neighborhood Appearance and Safety: By using the existing HILP
program for low-cost loans to current homeowners, the county will
assist homeowners in maintaining and preserving the appearance and
safety of their neighborhoods.

Community Housing Development Organizations (CHDO)
Set-Aside: Approximately $400,000 in federal funds will be
earmarkedinFiscal Year 2009 as CHDO HOME set-aside funds for nonprofit
organizations that are certified CHDOs to buy foreclosed homes and
rehabilitate them when necessary. These homes will then either be sold
to qualified first-time homebuyers or the nonprofits will use the homes
for rental purposes for qualified tenants.

Funding for the initiative will total $6.5 million, including
$1.8 million from the One Penny Housing Fund for Fiscal Year 2009; a
proposed $4.5 million from the One Penny Housing Fund for Fiscal Year
2010, which will be considered in the budget approval cycle for that
fiscal year; $2.075 million in existing federal HOME funds; and $2.95
million in existing FCRHA line of credit funds. In addition, the
program is designed to leverage potential federal funding should that
become available.

Fairfax County is committed to
nondiscrimination on the basis of disability in all county programs,
services and activities. To request this information in an alternate
format, call the Office of Public Affairs at 703-324-3187, TTY 711.